Brevan Howard shares spoils of £60.4m pay pot

Michael Bow
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THE UK arm of Europe’s largest hedge fund Brevan Howard divvied up a smaller £60.4m profit for its partners last year after a fall in revenues at the business.

Brevan Howard Asset Management paid £36.4m in profits to members and £26.9m to cover operating expenses for the 12 months ending 31 March 2013, according to accounts filed at Companies House, on top of £38.4m paid in total as salary.

The average number of partners at the firm during the year was 46, according to the accounts, though some are corporate entities rather than traders.

The payout is lower than 2011-12 – when total salaries and bonuses tipped past £150m – due to lower income earned from management fees connected to Brevan’s range of 11 funds. Total fee income fell from £371.9m in 2012 to £125.7m.

The highest-paid member of the partnership, who was not named, earned £39.4m last year, according to the accounts, down from the £78.9m made in the year ending 2012.

The St Helier, Jersey-based firm’s flagship fund, the Master fund, gained 3.9 per cent in 2012 and is up nearly three per cent year to date.

The fall in revenues was cushioned by a rise in assets under management last year to about €40bn, making it the biggest hedge fund in Europe.

A spokesman for Brevan Howard declined to comment on the accounts.

The fund was created in 2002 by five former Credit Suisse traders including Alan Howard, who lent his name to the firm.